Guaranteed Auto Protection (GAP)
If a vehicle is stolen or declared a total loss after an accident (“totaled”), the owner’s insurance company typically pays out the current cash value. Since vehicles depreciate as they age, the cash value may be less than the amount left on the loan.
Many buyers don’t realize that they may be responsible for an outstanding balance on a vehicle they no longer even have.
Guaranteed Auto Protection (GAP) helps cover the “financial gap” between the cash value and the owed amount, so owners aren’t upside down on their loan. In the case of a total loss, GAP can waive or cancel most or all of the remaining loan balance. This includes up to $1,000 of the primary insurance deductible.
Eligibility: All makes and models unless specifically excluded.
Coverage can vary by state. Owners should refer to their actual contract for specific coverage details.
Many factors are involved determining a GAP waiver benefit and, in some cases, may not cover the entire remaining loan balance after your insurance settlement, please review your entire agreement including: Definitions, Limitations, Exclusions, and Reporting a Deficiency